John Deere invests £40m in European parts operations

Machinery manufacturer John Deere is to expand its European parts distribution network with a £40 million plus investment in a new centre in Stockholm and the expansion of its German site.

The company will invest around £20m expanding its Bruchsal site in Germany and will build a new Regional Distribution Centre near Stockholm in Sweden.

John Deere Europe, CIS, Northern Africa, Near & Middle East director of parts distribution Fritz Rheindorf said:  "The continual expansion of John Deere product lines throughout Europe requires the parallel expansion of our parts infrastructure.  With the intent to provide excellent parts service to our customers and dealers, and in light of rapidly increasing logistical costs and environmental considerations, we are enhancing the services of our E-PDC in Bruchsal, and have decided to establish a regional parts distribution center in Northern Europe."

The Bruchsal expansion includes a new 16,700sq m facility creating extra space for receiving, packaging and cross-docking parts at E-PDC and will enable more efficient distribution of orders to John Deere dealers throughout Europe, and to other parts centers worldwide.

The new John Deere regional distribution centre near Stockholm will be opened in late 2011, and will also incorporate John Deere Forestry parts and retail sales office, which is currently located in Maersta (Sweden).

The 18,700sq m RDC will serve dealers and customers in the Scandinavian and Baltic markets.

This operation will complement the newly established EurAsian parts distribution center in Domodedovo near Moscow, which has recently started its first shipments to John Deere dealers and customers in the CIS.


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